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HMRC internal manual

Compliance Handbook

Penalties for Failure to Notify: Calculating the penalty: Calculation process: Unprompted disclosure calculation example - less than 12 months late

Viktor has notified us of his tax liability 6 months late. His failure to notify sooner is non-deliberate. The notification is unprompted. The PLR is £55,000.

Step 1

The percentage for the quality of the disclosure (a) has been calculated as 100%.

Step 2

The maximum penalty (b) is 30% and the minimum penalty (c) is 0%.

So the maximum disclosure reduction (d) is 30 - 0 = 30%.

Step 3

The actual reduction percentage for disclosure (e) is 30 x 100% = 30%.

Step 4

Penalty percentage to be charged (f) is 30% - 30%= 0%.

Step 5

The penalty to be charged (g) is £55,000 x 0% = Nil.